Egg and butter company Vital Farms (NASDAQ: VITL) will be reporting earnings this Tuesday before market open. Here’s what investors should know.
Vital Farms beat analysts’ revenue expectations last quarter, reporting revenues of $166 million, down 10.1% year on year. It was a satisfactory quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations but a significant miss of analysts’ EBITDA estimates.
Is Vital Farms a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Vital Farms’s revenue to decline 8.4% year on year, a reversal from the 37.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Vital Farms has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Vital Farms’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Pilgrim's Pride’s revenues decreased 2.2% year on year, missing analysts’ expectations by 0.8%, and Cal-Maine reported a revenue decline of 41.5%, falling short of estimates by 3.9%. Pilgrim's Pride traded up 4.7% following the results while Cal-Maine was down 4%.
Read our full analysis of Pilgrim's Pride’s results here and Cal-Maine’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 6.3% on average over the last month. Vital Farms is down 6.2% during the same time and is heading into earnings with an average analyst price target of $12.22 (compared to the current share price of $8.68).
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